Forex: EUR/USD capped just below 1.2900 (Barcelona) - The risk sentiment has been improving since mid-European session, but found resistance just below 1.2900, printing its daily high at 1.2898 and allowing profit taking down to 1.2885 area.

After the Rajoy-Hollande meeting, the French President said that lack of confidence is holding back the Eurozone growth and the Spanish Prime Minister aims to beat the IMF growth forecasts.

“The downtrend here is absolutely intact and I expect 1.2906 intraday resistance to limit the upside and to initiate a new wave downwards, through 1.2802, en route to 1.2750”, wrote analyst Stoyan Mihaylov, pointing to resistance at 1.2990.